Budget 2026 — Employment Measures

Key Employment-Related Changes in Ireland

Ireland’s Budget 2026 introduces a range of measures aimed at strengthening the labour market, improving employment conditions, and supporting workforce development across key sectors of the economy. Below are the main updates under the Employment category.

1. National Minimum Wage

Effective 1 January 2026, the national minimum hourly wage will increase by €0.65, reaching:

€14.15 per hour

The increase applies to all employee categories covered by the standard national minimum wage.

2. Employee Income Supports

The 2% USC rate threshold is being raised to €28,700.

Core tax credits and income thresholds are being indexed.

Measures continue to help reduce the tax burden on working individuals.

3. Training and Upskilling Programmes

Expansion of Apprenticeship and Traineeship programmes.

Additional funding is allocated for training in construction, engineering, IT, and energy-related fields.

Reskilling initiatives support workers whose roles are changing due to digitalisation.

4. Digital Skills and Future Skills Initiatives

Increased funding for Future Jobs Ireland.

Enhanced access to digital skills training, including automation, data management, and basic AI competencies.

Support for workers adapting to new skill requirements in evolving sectors.

5. Youth Employment and Graduate Supports

Expanded supports through Pathways to Work for young professionals.

More paid placements in technical and engineering disciplines.

Strengthened employment pathways for graduates through public and private schemes.

6. Green Jobs and Environmental Skills

Increased funding for training in energy efficiency, sustainable construction, and renewable energy.

Support for developing skills required for the transition to a low-carbon economy.

7. Low-Income Worker Supports

The income threshold for the Working Family Payment rises by €50 per week.

Additional subsidies and education supports become available to low-income working families.

8. Employment Permits and Workforce Migration

Increased quotas for Employment Permits across priority sectors.

Improved and faster processing procedures for work permit applications.

Strengthened supports for employers recruiting international talent.

9. Labour Law Updates and HR Processes

Introduction of updated digital formats for employment documentation.

Simplification of HR record-keeping and reporting requirements.

Enhanced compliance standards for workplace safety and employment conditions.